Turkish Airlines has confirmed that its proposal to acquire a minority shareholding in Spain’s Air Europa has been accepted.
The national carrier of Turkey had revealed in June that it was engaged in preliminary, non-binding discussions regarding a possible investment in Air Europa. Earlier this month, it said it was preparing to move forward with a formal binding offer.
In a filing to the Public Disclosure Platform late on Tuesday, the airline announced that Air Europa had accepted the offer, allowing the process to advance to the drafting of transaction documents and the launch of official procedures needed for completion.
According to the statement, the deal represents an investment of some €300 million, with most of the funds to be provided through a capital increase.
The exact size of the minority stake will only be determined once technical and financial adjustments are finalised at the closing stage, the company added. Spanish media reports suggest that the stake could be up to 27%.
‘The process is expected to be completed within approximately 6 to 12 months subject to obtaining the necessary permits and approvals from the relevant regulatory authorities,’ Turkish Airlines said in a statement.
An executive at the airline previously explained that the attraction of Air Europa lay in its network, which complements Turkish Airlines’ own by offering significant reach in both Latin America and the Iberian Peninsula.
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